Tullow strikes new oil deposit in Kenya

Tullow, a British multinational firm, has made a new oil discovery in the South Lokichar Basin in the Rift Valley and doubled oil production estimates for two other prospects.

In a statement released on Wednesday morning, Tullow said it had struck oil in Etuko-1 following drilling that commenced in May.

Soared to the top

“These results are an important step towards understanding the commerciality of the Lokichar Basin and, as we advance towards the commercial thresholds for development, Tullow continues to work in consultation with the Government of Kenya on development options,” read the statement.

After the announcement, reports indicate that the oil company has soared to the top of the leading index.

5,000 barrels per day

The latest testing data from the Twiga South-1 and the Ngamia-1 has seen Tullow upgrade its estimates for the oil production potential for both discoveries.

The company now estimates a flow potential of about 5,000 barrels of oil per day per well.

Further, the potential for both discoveries is now estimated at 250 million barrels of oil but could shoot up upon further appraisal.

“In Kenya, we have significantly upgraded our resource estimates for the South Lokichar Basin following the highly successful flow testing of Ngamia and Twiga-South,” said Tullow chief executive, Aidan Heavey.

Mineral wealth

Tullow first struck oil in Kenya in March last year raising hopes that the country could be headed for a new era of mineral wealth. (READ: We have found oil, says Kibaki)

In Uganda, Mr Heavey said Tullow is expected to sign a Memorandum of Understanding with the government for the development of oil strikes in the Lake Albert Basin.

The company said that these developments are indicative of successful operations in the first half of the year as well as positive outlook for the second half of the year and for 2014.

Tullow is expected to release its half year results on July 31.


Source: Daily Nation